Buying a home can be a whirlwind of different experiences and emotions. However, part of the stress of this situation may be attributed to anticipating what comes next in the mortgage process. The anticipation of waiting to get pre-approved, finding the right type of loan, and waiting for word back from your lender if your loan was approved or not may make any homebuyer anxious.
The key to lessening this anticipation is to brush up on your knowledge of the home loan process. Most of the anticipation will be connected with taking out a mortgage, so it will make sense to get to know what happens in the process and get as much information as you can about the process to get a home loan. This blog post will help you gain more information on this topic and help you get rid of the anxiety that comes with waiting for what comes next.
Common Snags and Complications in the Home Loan Process
While waiting for the outcome of a mortgage application may naturally make one feel anxious, there is true value in knowing the possible mistakes that a loan applicant may make to cause delays and complications in the process. Here is a list of those possible (yet completely avoidable) mistakes to help you have a smooth-sailing transaction.
1 – Errors in Paperwork
There is a bunch of paperwork that needs to be filled out when one applies for a mortgage. Even if human error may tend to happen, it is best to triple check any and all documents after you fill them out. Proofreading these documents will ensure that you do not commit any mistakes when you turn the papers in for filing.
2 – Changes in Income and Debt
One crucial financial aspect that will be scrutinized during the home loan process is your debt-to-income ratio. While it may sometimes be unavoidable to encounter changes, it is best to keep all your debt stagnant during the application process. This will help you avoid having to re-verify your debt-to-income ratio again and again.
3 – Appraisal is Too Low
Most lenders will need to appraise the property you are eyeing because they will need to evaluate the value of the home and the amount that you are trying to borrow. The amount for your mortgage should either be equal to or lower than the value of the home. You may experience complications with your mortgage if the property is appraised at a value that is lower than what you are trying to finance.
4 – Problems with Inspection
As a buyer, it is a must that you have the home inspected before you buy it. Should there be any potential issues discovered because of the inspection, it may cause delays but will give you an idea on if investing in the property is a viable option or not.
Whether you are a first-time homebuyer, or have gone through this process before, it may still be a stressful experience to have to deal with any of the hiccups mentioned above. This is where doing your due diligence comes in. doing proper research and making sure that all your paperwork is filed correctly and in a timely manner will ensure that no snags in the home loan process are caused by negligence. Also, working with a reliable lender will ensure that you will be able to find the mortgage that will fit your needs and budget.
Should you have any questions or need a home loan in Colorado Springs, come to Total Lending Concepts. We offer home loans to fit every situation — whether you are a first time home buyer searching for your first home or ready to buy that dream home you’ve had your eye on. Total Lending Concepts offers a wide variety of loan options — conventional, VA, USDA, FHA as well as other options to fit your needs. We can’t wait to show you what getting a “home loan with a little TLC” feels like!